American Eagle Outfitters is down again today, and the bears are piling into the clothing retailer.
optionMONSTER’s Depth Charge tracking program detected the purchase of more than 15,000 April 12 puts, most of them priced at $0.15. Volume was more than 13 times open interest at the strike, which indicates that new positions were initiated.
Puts lock in the price where a stock can be sold, rising when shares fall. Investors use them to hedge long positions in a stock or to speculate on a drop.
— Option Monster